Mar 31 2010, 04:52 PM
QUOTE(darkknight81 @ Mar 31 2010, 12:55 PM)
RCECAP 9296
Reasons for me to pick up RCECAP
As of 31-December-2009.
1. NET ASSET PER SHARE = 50 CENTS.
2. 3 Months EPS ended 31-December-2009 2.67 CENTS. Base on 2.67 cents we can roughly project 2010 EPS to be around 10.68 cents.
My entry price 67 cents. Which is trading at PE of around 6.27 TIMES!!!
Remarks : As the interest payment is expected to be a constant income so we don expect reduce in EPS in future.
EPS TRACK RECORD
2003 -5.89 CENTS (Just started their Ah Long business)
2004 4.09 CENTS (Adjusted for bonus issue and share split)
2005 2.78 CENTS (Adjusted for bonus issue)
2006 3.69 CENTS (Adjusted for bonus issue)
2007 9.98 CENTS
2009 9.36 CENTS
2010 (E) 10.68 CENTS
EPS will not really reflect in terms of growth as there are a lot of bonus issue and share split just for reference purpose. Net Profit will be the right tool to gauge RCECAP GROWTH RATES.
RCECAP is a very good counter when you talk about value investing. I have been holding the shares for 5 years. Unfortunately the company is very bad in investor relation, not good at all in promoting itself. The price has remain range bound all this while. It doesnt pay much dividend coz it's capital intensive.. Pretty disappointed with this counter.Reasons for me to pick up RCECAP
As of 31-December-2009.
1. NET ASSET PER SHARE = 50 CENTS.
2. 3 Months EPS ended 31-December-2009 2.67 CENTS. Base on 2.67 cents we can roughly project 2010 EPS to be around 10.68 cents.
My entry price 67 cents. Which is trading at PE of around 6.27 TIMES!!!
Remarks : As the interest payment is expected to be a constant income so we don expect reduce in EPS in future.
EPS TRACK RECORD
2003 -5.89 CENTS (Just started their Ah Long business)
2004 4.09 CENTS (Adjusted for bonus issue and share split)
2005 2.78 CENTS (Adjusted for bonus issue)
2006 3.69 CENTS (Adjusted for bonus issue)
2007 9.98 CENTS
2009 9.36 CENTS
2010 (E) 10.68 CENTS
EPS will not really reflect in terms of growth as there are a lot of bonus issue and share split just for reference purpose. Net Profit will be the right tool to gauge RCECAP GROWTH RATES.
Added on March 31, 2010, 4:54 pm
QUOTE(StupidGuyPlayComp @ Mar 31 2010, 01:34 PM)
Conratz threader became Ah Long............
Exactly! Interest and repayment deducted directly from pay. Minimal default and NPL.Added on March 31, 2010, 4:55 pm
QUOTE(SKY 1809 @ Mar 31 2010, 01:48 PM)
One thing , they have the monopoly in this type of business.
Banks are not allowed to compete with them.
From reported news in internet.
Reason: could be restricted Ah Long licence , like our Genting Casino.
Correct me if I am wrong. It doesnt have monopoly anymore. Some banks, eg Bank Rakyat, are doing the same thing. Aeon Credit is another company doing that, but more on motorbikes..Banks are not allowed to compete with them.
From reported news in internet.
Reason: could be restricted Ah Long licence , like our Genting Casino.
Added on March 31, 2010, 4:57 pm
QUOTE(SKY 1809 @ Mar 31 2010, 01:52 PM)
They do not come under the Banking Acts.
They are not allowed to take FD deposits from outsiders either.
That's why they need a lot of capital hence dividend payout is minimal.They are not allowed to take FD deposits from outsiders either.
This post has been edited by newbie99: Mar 31 2010, 04:57 PM
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